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relevant standards and guidelines. Actively engaging (ii) Strengthen policy synergy and guidance.
third-party professional organizations for audits and Governments should enhance coordination between
verifications can improve the credibility and reliability environmental inspections and other environmental/
of information, enhance market trust, and reduce the industrial policies to achieve synergistic effects. By
risk of information asymmetry. Third, Fs should be leveraging tax incentives, fiscal subsidies, and green
strategically leveraged. Enterprises should adopt prudent finance mechanisms, authorities can incentivize
investment strategies and optimize resource allocation corporate environmental responsibility, reduce
to maintain adequate Fs. This allows enterprises to green transition costs, and elevate firms’ proactive
enhance resilience against unforeseen policy shifts engagement in ecological governance.
and external risks. By aligning financial planning with (iii) Implement precision-based differentiated
both organizational fiscal capacities and regulatory regulation. Accounting for corporate heterogeneity,
compliance requirements, firms can systematically regulators should intensify supervision and post-
allocate surplus capital toward green technology R&D, rectification feedback for private enterprises,
environmental protection infrastructure development, non-eastern-region firms, and those with limited
and environmental management system upgrades. Such
strategic financial deployment not only circumvents Gws Fs. In addition, pre-inspection data collection on
allegations but also preemptively addresses potential corporate and executive profiles can inform tailored
regulatory penalties, fostering long-term value creation regulatory strategies, improving environmental
through environmentally conscientious operational governance efficiency and precision.
paradigms. Finally, executive leadership should be
enhanced. Enterprises should prioritize the recruitment Acknowledgments
of senior executives with postgraduate qualifications
and specialized financial expertise. Such individuals, None.
leveraging their profound academic foundations,
professional financial acumen, and expansive industry Funding
insights, are capable of effectively navigating crises
amid complex and evolving risk landscapes. In firms This study is funded by National Education Science
led by high-power CEOs, centralized authority can offer Planning Project: Research on Multidimensional
operational flexibility and facilitate efficient decision Identification of “Internationalization at Home”
implementation. However, to avoid governance risks Learning Needs for College Students and Corresponding
associated with concentrated power, it is critical that Teaching Mode Design (DIA220368).
boards of directors—as a cornerstone of corporate
governance—rigorously oversee the formulation Conflict of interest
and execution of strategic decisions. This includes
proactively identifying and rectifying latent deviations The authors declare that they have no competing
to prevent material errors stemming from subjective interests.
judgment failures or managerial overreach.
To mitigate localized pollution issues and achieve Author contributions
high-quality compliance with CEPI objectives,
government authorities should consider the following Conceptualization: Chen Lv
strategies: Formal analysis: Jian Wang
(i) Sustain the refinement of inspection mechanisms. Investigation: Jian Wang, Qi Zhao
Given the pronounced impact of CEPI on corporate Methodology: Jian Wang, Yuanyuan Xu
behavior—coupled with tendencies among some Supervision: Chen Lv
firms toward short-term compliance—regulators Writing–original draft: Jian Wang, Chen Lv
must ensure inspection continuity and adaptability Writing–review & editing: All author
through enhanced follow-up reviews and long-term
oversight. This approach can prevent regression in Availability of data
rectification efforts and combats superficial responses,
thereby solidifying inspection outcomes and fostering Data are available from the corresponding author upon
sustained corporate green transformation. reasonable request.

Volume 22 Issue 4 (2025) 236 doi: 10.36922/AJWEP025280219